Name _________________________ Class _______________ Date _______________
CHAPTER
2
CHAPTER OUTLINE
Economic Systems
2
Directions: Fill in the outline below. Filling in the blanks will help
you as you read and study Chapter 2.
I.
Section 1: Answering the Three Economic Questions
A. Economic Questions and Goals
1. The answer to the question “What should be
____________________?” tells where resources will be used.
2. The question “________________________ should things
be produced?” shows how people will use capital.
3. The third question a society must answer is “Who should
________________________ what is produced?”
4. When the _______________________ of living is improving,
the country’s economy is ________________________.
5. Economic ________________________ means a society
does not waste its resources.
6. Americans have economic ________________________,
and so can choose their jobs.
7. When a country tries to even out what its workers earn,
it creates economic ________________________, or fairness.
B. Traditional Economies
1. A ________________________ economic system is based
on what the society has done in the past.
________________________ happens very slowly.
II. Section 2: The Free Market
A. Characteristics and Advantages of a Free Market
1. Buyers and sellers have the freedom to make a
____________________ exchange, or willing transfer.
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50
Name _________________________ Class _______________ Date _______________
CHAPTER OUTLINE (continued)
Economic Systems
2
2. _________________________, or the contest between firms,
gives consumers ___________________ to spend because
of the lower prices.
3. Advantages of a free market economy include: changing
what is _________________________ when conditions
change, _________________________ freedom, and
_________________________ leading to economic growth.
III. Section 3: Centrally Planned Economies
A. Characteristics of Centrally Planned Economies
1. The _________________________ decides the answers to
the three basic economic questions.
2. Command economies are found in two political-economic
systems known as _________________________ and
_________________________.
3. Because there is little _________________________,
there is little economic growth.
IV. Section 4: Mixed Economies
A. Characteristics of Mixed Economies
1. Both _________________________ and the
_________________________ make economic decisions.
2. People who believe in laissez faire do not want the
_________________________ to make economic decisions.
3. The United States has a _____________________ enterprise
system, with most investment decisions made by
_____________________.
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